I don't disagree with you... But the charts are absolutely not worthless...
Infact charts mean way more in the OTC then they mean anywhere else aside from perhaps FOREX and Crpyto...
What's important to realize is in the OTC, 99% of the companies are absolute crap, worst of the worst, be it a scam (especially within the pink sheets because they can virtually say whatever they want without being audit to prove otherwise), be it a company circling the drain, be it a company that is up and coming but never makes it big... These are the worst stocks and very few of them actually become anything remotely close to a decent company or stock... So because of this reason, people inheritance acknowledge and accept they are literally playing with garbage when they invest in these stocks, the few who think the invested long into something worth while are really the minority and are almost always wrong (again, 99% of these companies fail)... So because of this, odds say you are best off not investing in the OTC and better of just trading it... This is where charts come in... Because 99% of these companies are crap, fundamentals at this level are garbage, and often even fabricated... Again, pink sheets aren't audited, so they can literally tell you anything they want, and who'd challenge them??? So because fundamentals here are largely garbage or fabricated, the vast majority of people that trade these stocks 1.) don't hold that long term, and 2.) use charts to judge what stock to enter, and where to enter/ exit... It is all based on psychology... If a chart has a pattern or "xyz" reason to enter it, then people will enter based on the chart.... Their entries will push the price up, thus the chart fulfills the prophecy though it was all really self fulfilling to begin with... Shorts exit a stock because of signs upon the chart, and when shorts get out, they buy which helps push the price up... And when long buy as well it intensifies the bullish behavior of the chart... But again, it mostly comes back to the chart...
Sure, charts aren't everything, and they certainly are not 100% accurate or the end all be all.... Sure news or something can change everything... But what is important to realize is that charts are used only to gain an edge in a world of uncertainty... Much like playing Black Jack by the book gains you an edge in the game - but it doesn't guarantee you a win.... Unlike Black Jack though, if used properly, charts can gain you better than the 50% edge of success... But again, it is all about the odds and probabilities... Odds are, the chart will prevail, but there are slim odds it will not... Just like odds are you won't win the lottery, but there is a slim chance you could.... So understanding how to use the chart is important... It is NOT a crystal ball, but more of a way to gain an edge... And again you need to be aware of outside factors as well... Things like holidays, or significant dates to an industry your stock might be associated with, or news the company releases or news an associated company releases can influence your stock, as can other factors... So while no, charts don't typically account for these things, more times than not the chart and news usually agree.... Infact usually news is released into volume especially in the OTC to help the company to dilute... So when the chart starts pushing volume, the company starts pushing news.... But not all news occurs when the chart says it should - and not all news has an effect on the share price either.... And in many cases people sell the news, so news can have an inverse effect sometimes too than what is expected...
So charts are very vital with OTC stocks.... With the big league stocks like Amazon, they are less meaningful (still useful though and have their place to be used even with those stocks), but at that level news is more important... But at those levels the stock's companies are also audited thus more trust worthy (though nothing is 100% true ever - ENRON for example was a "big league" stock scam - but again, odds are this won't happen at those levels and thus they occur less often on those levels)...
The only 100% truth in the market is the fact yo uan be assured nothing is 100% true...
Ever wonder though why even a garbage company can run for absolutely no reason at all??? And why a company with great fundamentals (like AMFE for example) can struggle to run at all despite the great fundamentals and constant good news???
Charts!!!
That and the OTC has a "cool factor" thing.... IE when a stock becomes hot, news and charts, etc. all have a greater effect than when it is not hot (when it loses its volume)... The only time I'd agree with charts being nearly worthless is when a chart has dead volume....
And note PNAT has a 500 million authorized share limit that either would have to be raised, or if maxed out their other option is doing a reverse split... So while true dilution can kill, we are 1.) well below the limit still and considerably a low float, low OS stock.... 2.) dilution here is not nearly as bad as it was a few weeks ago... 3.) They are starting to get sales and head way with their product and revenue generating... Why do you think out of no where volume hit the chart here when volume was nearly no existent for literal years... Because here is where the company is turning a new leaf... The chart is attempting to bottom out and reverse course....
The key though like you implied is the company has to start showing improvement.... Progress.... Keep in mind and in perspective this stock is not only an OTC stock, it is a pink sheet stock, and furthermore it is a sub penny stock... So we are trading right where we should be based on the fundamentals until the fundamentals show improvement... But also keep perspective on the fact that the market is forward looking in nature... IE investors don't care where the company is now, they want to see where the company will be in the near and far future... Where is the company going... This is why companies that are even posting losses can still have a rising share price.... PNAT as of now at least shows the promise that it is going somewhere in the future... Buy the rumor and sell the news applies big time here.... smart money invests in a company that is showing signs of improving long before the improvement...
And dilution isn't all bad either.... As long as it is being used properly... Dilution to expand the company or increase its profitability in the future is good dilution and the very point behind public investing IE the stock market... Dilution that just pays bills and paychecks is toxic... That's money in the company you will never see any progress from, it just helps to keep the stock a float for another period of time... Dilution that buys sponges for example with PNAT so that PNAT can sell them for a profit is good dilution because it adds to the company's bottom line.... PNAT is otherwise making all the right moves with expanding their list of vendors and places their product can be bought from.... So you have to be flexible and well versed to see where the real value is with a stock... Big sales numbers is good for the short term... But that will only help the share price so much and becomes a forgotten thing of the past... Again, the market is about forward looking....
I wouldn't worry... PNAT is doing just fine for where it stands... If this company were any better, the share price would already be up and you would have already missed out on your opportunity to make money here... This is the reason the market is forward looking, and often the reason why you buy the rumor and sell the news... Once news is released it is immediately already old news...
Hope that makes sense - I know it is a novel to read, but I hope someone benefits from it... If you wish not to read it, that's fine... Your loss, not mine....
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